How the appraisal value directly affects the real estate transaction
Especially in this market where the inventory of homes is limited and buyers are fighting over homes, outbidding each other, appraisals are very important. An appraisal can make or break a transaction. The other day I helped a home buyer win a multiple offer situation. He absolutely wanted the home as it was exactly what he was looking for and it was in his price range. Even with the escallation clause, the home was still in his price range. So when it came to the appraisal the home appraised for 10 k less then what it was under contract. I was able to negotiate with the seller to reduce the price to match the appraisal and to keep all the same conditions. My buyer was very happy. Not so much the seller.
Whenever a purchaser finances a home purchase, the lender will have to order an appraisal. Appraisers are independent and they have to determine the home value based on the condition, market values and features of the home. The appraiser will also look at any recent upgrades. It helps to provide the lender with a detailed list of what has been recently improved. With the list also provide an approximate cost of the remodeling, this all will add value to the home and the appraiser will need it.
How can you prepare for an appraisal?
Prepare a list of improvements
Add any recent improvements to a list and provide it to your Real Estate Agent. Add any repair, or improvement even if it is a small improvement. Be sure to add the cost of the improvement to the list.
Keep Home in Show Ready Condition
If at all possible keep your home in show ready condition for the time the appraiser is showing up. Try to wait with moving too much stuff before the appraiser comes to assess the value of your home. I understand that that’s not always possible and technically appraisers are only supposed to look at the size and condition but the staging does have some kind of phycological impact anyhow. Also be sure the home is clean.
Property Survey or Plat & Floor Plan
Provide your agent a property survey or plat. This will make it easier for the appraiser to get the actual measurements of the home. If you still have the actual floorplan for the home be sure to provide that to your agent as well.
Your agent will provide the appraiser with comparables. This will be a list of similar homes that recently sold and that would support the value of your home. This will help the appraiser.
Often times sellers will ask me if they can order an appraisal before putting the home on the market and if the lender can use that appraisal. The answer is NO that is not possible. Of course you can order an appraisal anytime just to get a better idea of what your home might appraise, but it can not be used in the transaction. Your best way to determine the value of your home is by contacting a local Real Estate Agent and request a home valuation.
If you are thinking about selling your home, The Claudia S. Nelson Real Estate Team will be happy to assist you. Call Claudia today at 571-446-0002 and I will be happy to set up a time to view your home to provide you with a free home valutation. Don’t wait call your local Woodbridge VA Real Estate Agent, Claudia S. Nelson today.